MIRA INFORM REPORT

Report Date :

15.06.2011

IDENTIFICATION DETAILS

Name :	PERMANENT MAGNETS LIMITED
Registered Office :	Maharshi Dayanand, Bhawanraopura, Baroda-390007, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.11.1960
Com. Reg. No.:	04-001002
Capital Investment / Paid-up Capital :	Rs.85.984 millions
CIN No.: [Company Identification No.]	L27100GJ1960PLC001002
IEC No.:	0388061502
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16000F
PAN No.: [Permanent Account No.]	AAACP2231M
Legal Form :	Public Limited Liability Company. Company's Shares are Listed on the Stocks Exchange
Line of Business :	Manufacturer and Exporter of Permanent Magnetic Products and Welding Equipments.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 633000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. S.M. Jain
Designation :	Accounts Manager
Contact No.:	91-9323566529
Date :	13.06.2011

LOCATIONS

Registered Office :	Maharshi Dayanand, Bhawanraopura, Baroda-390007, Gujarat, India
Tel. No. :	91-22-29452121 / 28979362 / 29452140 (Factory No.)
Mobile No.:	91-9323276637 (Mr. Arun Dharmatti)
E-Mail :	bdshah@pmlindia.com mrkeni@pnlindia.com bhavana63@pmlindia.com info@pmindia.com sales@pmlindia.com smjain@pmlindia.com
Website :	http://www.taparia.com http://www.pmlindia.com
Area :	10000 sq. ft.
Location :	Rented
Head Office/Factory 1 / Corporate Office :	B-2/3, MIDC Industrial Area, Village Mira, Mira Road, Thane-401104, Maharashtra, India.
Tel. No.:	91-22-29452121
Mobile No.:	91-9323566529 (Mr. S M Jain)
Fax No.:	91-22-29452128/31
E-Mail :	smjain@pmlindia.com
Websites :	http://www.pmlindia.com
Location :	Rented
Factory 2 :	Plot No. 22, Mira Co-operative Industrial Estate, Mira Road(E), Thane-401104, Maharashtra, India
Location :	Rented

DIRECTORS

As on 30.09.2010

Name :	Mr. Shyam Sunder Taparia
Designation :	Managing Director
Address :	Vastushilp , 1^st Floor, Gamadia Colony Road, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	09.08.1938
Date of Appointment :	01.03.2002
E-Mail:	sst@taparia.com
Name :	Mr. Arun Binani
Designation :	Non Executive Chairman
Date of Birth / Age :	55 Years
Qualification :	B.Com.
Name :	Mr. Anilkumar Taparia
Designation :	Independent Director
Name :	Mr. Rajeev Mundra
Designation :	Independent Director
Date of Birth / Age :	47 Years
Qualification :	C.A.
Name :	Mr. Sharad Kumar Taparia
Designation :	Executive Director
Date of Birth / Age :	38 Years
Qualification :	M.B.A.

KEY EXECUTIVES

Name :	Mr. Dinesh Lahoti
Designation :	Company Secretary
Audit Committee:	Mr. Rajeev Mundra Mr. Arun Binani (Member) Mr. Anil Kumar Taparia (Member)
Remuneration Committee:	Mr. Rajeev Mundra Mr. Arun Binani (Member) Mr. Anil Kumar Taparia (Member)
Name :	Mr. D.G. Thakurdesai
Designation :	President
Name :	Mr. Sharad Taparia
Designation :	Chief Executive Officer
Name :	Mr. K.B. Bhat
Designation :	Chief Operating Officer
Name :	Mr. R. Avadhani
Designation :	Chief Finance Officer
Name :	Mr. S.V. Modgi
Designation :	Senior Vice President
Name :	Mr. G. Bagchi
Designation :	Vice President
Name :	Mr. S.S. Naik
Designation :	Vice President
Name :	Mr. P.A. Kamath
Designation :	Vice President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	686,065	7.98
Bodies Corporate	1,046,179	12.17
Financial Institutions / Banks	31,290	0.36
Any Others (Specify)	4,411,528	51.31
Directors/Promoters & their Relatives & Friends	4,411,528	51.31
Sub Total	6,175,062	71.82
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6,175,062	71.82
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	690	0.01
Sub Total	690	0.01
(2) Non-Institutions
Bodies Corporate	101,303	1.18
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,481,991	17.24
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	733,512	8.53
Any Others (Specify)	105.895	1.23
Clearing Members	890	0.02
Non Resident Indians	36,555	0.43
Foreign Corporate Bodies	66,600	0.77
Sub Total	2,422,701	28.18
Total Public shareholding (B)	2,423,391	28.18
Total (A)+(B)	8,598,453	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Permanent Magnetic Products and Welding Equipments.

Products :

Product Description	Item Code
Cast alloy permanent magnets	85051190
Parts and accessories for electricity meter	90289010

Exports :

Products :

Magnets and Parts

Countries :

• USA
• Russia
• Gulf Counties

Imports :

Products :

Raw Material

Countries :

• China
• Japan
• USA
• Canada

Terms :

Purchasing :

Depends

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cast Magnet Including Assemblies	MT	400	400	119.80
Part and Accessories of Electricity Meter	Pcs in Lakhs	78	78	50.81

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

250 (Approximately)

Bankers :

· Central Bank of India,

· Address 1 : Corporate Finance Branch, Mumbai Main Office, Mumbai – 400 023, Maharashtra, India

Address 2: Corporate Finance Branch, MMo Building, 1^st Floor, M G Road, Fort, Mumbai – 400 023, Maharashtra, India

· State Bank of India

· Syndicate Bank, 26/A, Sir P M Road, Fort, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Working Capital Finance from Banks (net)	97.875	103.966
Term Loans	100.000	27.837
Loans for Vehicles	1.244	1.906
Central Excise loan	7.175	7.175
Interest accrued and due - On Central Excise Loan	11.377	10.257
On Term Loans from Banks	1.189	0.292
Total	218.860	151.436
Unsecured Loan
Deferred sales tax liability	2.909	2.909
Inter-corporate loan	1.536	7.397
Total	4.445	10.306

Note:

a) Secured against

(I) First pari passu charge on residential flat standing in the name of Synagauge Impex Limited and second pari passu charge on entire fixed assets of the company (excluding Borivali property), (ii) And further secured by TDR of Rs. 33.900 Millions.

b) (I) Exclusive charge on 5000 sq. ft. of constructible area at Borivali property out of the 15% Share of the Company,

(ii) These facilities are further secured by personal guarantees of Directors and relatives and a Corporate Guarantee by Synagogue Impex Limited.

c) Secured by hypothecation of specific assets/ vehicles purchased.

d) Secured by hypothecation of specific assets purchased under the scheme.

Banking Relations :	--
Auditors :
Name :	Jayesh Sanghrajkar and Company Chartered Accountants
Address :	405-408, Hind Rajasthan Building, 95, Dadasaheb Phalke Road, Dadar (East), Mumbai-400014, Maharashtra, India.
Associates/Subsidiaries :	Pregna International Limited Permanent Infotech (I) Private Limited Taparia Loudspeakers Private Limited Taparia Audio Component Private Limited Nymph Properties Private Limited Varij Plantation Limited Jalaj Plantations Limited Shriorient Corporation Suraj Agency Suyog Agency Kymsap Enterprises Shriniwas Company Private Limited Nova Audio systems Private Limited Nutal realties

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10/- each	Rs.100.000 millions
6000000	Redeemable Cumulative/non Cumulative Preference Shares	Rs. 10/- each	Rs. 60.000 millions
	Total		Rs.160.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
8598453	Equity Shares	Rs. 10/- each	Rs.85.984 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8598453	Equity Shares	Rs. 10/- each	Rs.85.984 millions

Note:

(Of the above)

(a) 11,000(P.Y.11,000) Shares have been allotted as fully paid up, pursuant to a contract for Technical Know-how without having been received in cash.

(b) 3, 86, 620 (P.Y.3, 86,620) Shares are allotted as paid up Bonus shares by capitalisation of Reserves)

(c) 39, 20,313 shares (P.Y.39, 20,313) have been allotted in accordance with the scheme of Amalgamation and Arrangement to the shareholders of merged Companies.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		85.984	85.984	85.984
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		72.382	69.795	58.125
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.366	155.779	144.109
LOAN FUNDS
1] Secured Loans		218.860	151.436	126.796
2] Unsecured Loans		4.445	10.307	9.257
TOTAL BORROWING		223.305	161.743	136.053
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		381.671	317.522	280.162
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		55.590	44.270	62.524
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.069	0.019	0.019
DEFERREX TAX ASSETS		8.999	8.123	7.730
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	324.415	316.499	260.568
	Sundry Debtors	94.567	47.867	96.426
	Cash & Bank Balances	47.208	27.654	34.960
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	66.974	145.036	104.486
Total Current Assets		533.164	537.056	496.440
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	199.350	241.942	195.381
	Other Current Liabilities	0.000	0.000
	Provisions	16.800	30.004	91.170
Total Current Liabilities		216.151	271.946	286.551
Net Current Assets		317.013	265.110	209.889
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		381.671	317.522	280.162

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	479.137	596.349	643.800
		Other Income	22.116	117.315	22.000
		TOTAL (A)	501.253	713.664	665.800
Less	EXPENSES
		Cost of Goods Sold	295.866	348.158
		Manufacturing Expenses	61.115	114.158
		Employee Cost	25.094	27.713	616.200
		Administration and Other Expenses	31.918	118.826
		Selling Expense	29.757	30.673
		Prior Year (Income / Expense)	0.512	0.167
		Extra Ordinary Items	6.691	9.457
		TOTAL (B)	450.953	649.152	616.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		50.300	64.512	49.600
Less	FINANCIAL EXPENSES (D)		38.161	30.139	28.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.139	34.373	21.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.803	11.027	12.800
	PROFIT BEFORE TAX (E-F) (G)		2.336	23.346	8.800
Less	TAX (H)		(0.251)	3.455	1.300
	PROFIT AFTER TAX (G-H) (I)		2.587	19.891	7.500
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		39.250	19.359	11.900
	BALANCE CARRIED TO THE B/S		41.837	39.250	19.400
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	343.653	444.040	NA
	IMPORTS
		Raw Materials	279.153	320.268	NA
	Earnings Per Share (Rs.)		0.30	2.31	0.87

Particulars	31.03.2011
Sales Turnover (Approximately)	620.000

Expected Sales (2011-2012) : More than Rs. 800.000 millions

The above information has been parted by Mr. Jain.

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	149.590	167.670	169.860	140.990
Total Expenditure	139.380	164.860	158.560	124.860
PBIDT (Excl OI)	10.210	2.810	11.300	16.100
Other Income	0.430	5.880	0.000	(6.690)
Operating Profit	10.640	8.690	11.310	9.410
Interest	7.410	48.860	8.500	8.220
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	3.230	3.830	2.810	1.190
Depreciation	1.980	2.120	2.300	2.450
Profit Before Tax	1.250	1.710	0.510	(1.260)
Tax	0.009	0.470	0.100	(0.830)
Reported PAT	1.160	1.240	0.420	(0.430)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	1.160	1.240	0.420	(0.430)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.52	2.79	1.12
Net Profit Margin (PBT/Sales)	(%)	0.49	3.91	1.36
Return on Total Assets (PBT/Total Assets}	(%)	0.40	4.02	1.57
Return on Investment (ROI) (PBT/Networth)		0.01	0.15	0.06
Debt Equity Ratio (Total Liability/Networth)		2.36	2.78	2.93
Current Ratio (Current Asset/Current Liability)		2.47	1.97	1.73

LOCAL AGENCY FURTHER INFORMATION

Note : The registered office address of the company has been shifted from Plot No. 110/1/11 and 12, Himalaya Industrial Estate, Village Amli, Dadra and Nagar Haveli, Silvassa-396230, Maharashtra, India to present address.

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors	48.304	58.667	195.381
Sundry Creditors under Foreign Bills	151.046	183.275
Total	199.350	241.942	195.381

HISTORY:

Subject was incorporated in 1960. It is currently being managed by Shreeram Taparia, chairman and Shyam Sunder Taparia, managing director. In Jan.'91, the company came out with a rights issue of 0.77 lac equity shares of Rs.100 at par, aggregating Rs.7.749 Millions on a 1:1 basis, to finance capital expenditure and meet long-term working capital requirements. PML produces two types of magnets -- cast alloy permanent magnets and hard ferrite magnets. The company exports its products to the US, the UK, Germany, Italy and Egypt. PML was declared sick in 1989-90 but it started making profits since 1990-91. During the year 1999-2000, the Jalgaon plant was closed on account of labour problem.

YEAR IN RETROSPECT:

The Sales for the financial year have declined 20% as compared to previous year. The decline is due to postponement of orders by their customers mainly in export market. The global slowdown and recession has affected The Company badly. However sales picked up substantially during the current financial year

WORKING FOR 2010-11:

The sales during April-June 2010 has been Rs. 149.600 Millions. The corresponding sales for the last year was Rs. 88.300 Millions, showing significant increase of 69%. The trend is likely to continue during the entire year.

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS ENVIRONMENT:

The Company has been able to weather global financial turmoil resulting into the one of the worst recessions. The year was very tough across all sectors for which Magnet Industry is no exception. It has been a drastic change in the way businesses are managed and conducted in order to survive the recession.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Alnico magnet industry worldwide is stable. Alnico magnets are used mostly in temperature sensitive applications. The industry demand is stable since a lot of substitution of Alnico has taken place by other magnetic materials while a small growth is continuing in the existing applications. The manufacturing of Alnico magnets and assemblies is now shifting from developed to developing nations since the manufacturing costs are lower. The substitution of electromechanical meters with electronic meters is continuing and expected to increase pace. The magnetic assemblies market is growing every year due to additions of newer applications.

OPPORTUNITIES AND CHALLENGES

The substitution of electromechanical meters by electronic ones presents an opportunity to the company for higher sale of components for meters across the world. The increased features in the electronic meters also present an opportunity to develop additional products for electronic meters. With the development of Indian economy, there is a good potential for increasing the magnetic assemblies business for industries like automobile, electronics, construction, food processing etc. Company is also seeing an opportunity for copper based alloys business worldwide. The ongoing economic turmoil around the world has considerably impacted us as export of The Company is almost 75% of total Sales. The threat for sale of magnets to electromechanical meters continues due to substitution by electronic meters. Since the changes in electronic industry are very fast, it represents a threat to the traditional stability of business. The high volatility and fluctuations of currency exchange rates presents a threat for the export business.

OUTLOOK

The economic crisis appears to have bottomed out slowly and export has started picking up. The outlook for business for 2010-11 appears positive at this point of time. PML is working actively to develop new products which will be the future of the Company. PML plans to expand the Hiperm business by product development and increase the Alnico business by getting into applications other than the traditional business of the Company.

FINANCIAL PERFORMANCE

The financial statements have been prepared in accordance with the requirements of the Companies Act, 1956, and the applicable accounting standards, unless otherwise stated. The financial performance of the Company has been summarized in table in the report of the Board.

Fixed assets

· Land – Freehold and Leasehold,

· Building,

· Plant and Machinery,

· Electric Installation,

· Laboratory Equipments,

· Miscellaneous Factory Equipments,

· Automobiles and Vehicles,

· Furniture and Fixtures,

· Office Equipments And

· Research and Development Machinery.

Contingent Liabilities:

Particulars	Rs. in Millions (As on 31.03.2010)
Unutilized Letters of Credit with Bankers	16.061
Bank Guarantee	1.925
Bills discounted with Banks and not realized (Secured by hypothecation of all moveable assets and second Charge on all Fixed Assets.)	55.827
Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts.	3.173
Excise Department has rejected the appeal filed by the company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of Rs. 5 Lakh for stay order. Stay order against recovery of the dues has been granted, in the opinion of Company's Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit. Further, in similar cases the Commissioner of Central Excise has ruled in favour of the company and has set aside the show cause notices. Duty Demanded	3.159
Interest on Central Excise loan (Operated through ICICI). According to the management Central Excise loan is interest free. However ICICI, the 80,12,044 Operating Agency raises certain demands towards the overdue installments. Company has provided simple interest as demanded by ICICI. Total interest provided by the company is Rs.9.138 millions, which may be reversable if the Central Government finally do not demand such interest the same will be refundable to the Company. The ICICI had also demanded Compounded interest which is not provided in the account as according to the company the same is not payable and the same is shown as contingent here. Additional interest if claimed by the department will be payable .However management does not expect any liability on that account	14.824
During the year, credit balances had been written back under the head "Misc. Balances Written back". According to the company those amounts are not payable since all have become time barred.	0.626
Income tax Department has raised a demand of Rs. 2,59,318 in respect of Suyog Agency Ltd. (Company merged with PML) for the A. Y. 07-08 of which Rs. 53,517 is recognized in the books and for the balance amount the company has filed an appeal with CIT (A).	0.206

Unaudited Financial Results for the Quarter / Nine Months Ended On 31.12.2010

Rs. In Millions

Particular	Quarter ended	Nine months ended
	Unaudited	Unaudited
	31.12.2010	31.12.2010
Net Sales/ Income form operation	162.422	479.682
Other Operating Income	7.442	0.000
Total Income	169.864	479.682
Expenditure
Increase / Decrease in stock	10.287	(10.335)
Consumption of raw material / purchase	100.420	309.248
Purchase of traded goods	0.000	0.000
Sub Contract Expense	15.393	46.749
Employees cost	7.307	21.715
Depreciation	2.297	6.394
Other expenditure	25.151	95.412
Total expenditure	160.855	469.182
Profit from operation before other income, interest and exceptional items	9.008	10.500
Other income	0.000	13.750
Profit before interest and exceptional items	9.008	24.250
Interest	8.495	20.772
Profit after interest but before exceptional items	0.514	3.478
Exceptional items	0.000	0.000
Profit / Loss from ordinary activities before tax	0.514	3.478
Tax expenses	0.095	0.645
Net profit/ Loss from ordinary activities after tax	0.418	2.833
Extra ordinary items	0.000	0.000
Net profit / Loss for the period	0.418	2.833
Paid up equity share capital (face value of equity shares of Rs. 10/- each)	85.984	85.984
Reserves excluding revaluation reserves		--
Earning per shares (in Rs) Basic/ Diluted	0.05	0.33
Public shareholding
Number of Shares	2423391	2423391
% of Shareholding	28.18	28.18
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	31290	31290
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	0.51	0.51
- Percentage of Shares (as a % of the Total Share Capital of the Company)	0.36	0.36
b) Non Encumbered
- Number of Shares	6143772	6143772
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	99.49	99.49
- Percentage of Shares (as a % of the Total Share Capital of the Company)	71.45	71.45

Note :

· The above unaudited results have been reviewed by the audit committee of the company and thereafter taken on record by the board of directors at their meeting held on 15.02.2011 and limited review for the same has been carried out by the statutory auditors.
 
· Provision for tax has been made as per the provision of income tax act 1961
 
· Status of investors complaints for the quarter ended 31.12.2010. Opening balance- nil, received- nil, disposed off- nil, pending as on 31.12.2010- nil
 
· The company has been operating in single business segments i.e. Magnetics and its applications. Segment reporting as per accounting standard 17 Is not applicable.
 
· Previous Years Figures have been regrouped / recasted wherever necessary to make them comparable.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 44.77
UK Pound	1	Rs. 73.45
Euro	1	Rs. 64.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.